Wall Street stocks are steady on Friday morning and Treasury yields are surging following a healthy report on the US job market, which strengthened expectations for coming interest-rate hikes. 

The S&P 500 was 0.02% lower as of 10:33 am Eastern Time Zone. The Dow Jones Industrial Average was down 52.16 points, or 0.15%, at 34,626, and the Nasdaq composite was 46.35 points or 0.32% high at 14,266.72.

Also Read | Delta flight with 198 on board forced to land after windshield cracks mid-air

The yield on the two-year Treasury jumped to its highest level in more than three years.

This comes after a US government report showed employers added 431,000 jobs last month, slightly below economists’ expectations for 477,500, but the report also revised earlier months’ data to reflect more strength. According to the report, wage growth accelerated last month, although at a slower rate than overall inflation, and the unemployment rate dropped to 3.6% from 3.7%.

Also Read | Wall Street opens higher as US adds another 431,000 jobs

A strong job market gives the Federal Reserve more freedom to raise interest rates sharply in a bid to curb the high inflation that’s sweeping the country. The US Central bank has already increased its key overnight rate once, the first such increase since 2018. After Friday’s job report, traders expect the Fed to raise rates at its next meeting by double the usual amount.

Also Read | Intriguing 1950 US census data released after 72 years – what does it show?

Short-term Treasury yields are influenced by these expectations, and the two-year yield rose to 2.44% from 2.28% late Thursday.

It again rose slightly above the 10-year yield, which was also climbing but not as quickly, up to 2.44% from 2.33%. Earlier this week, the two-year yield topped the 10-year yield for the first time since 2019, a potentially ominous sign.

Also Read | Inflation in 19 countries using euro currency soars to record 7.5%

Shares of GameStop jumped 6.4% to top $177 after it said it plans to split its stock, pending approval from shareholders for an increase in the number of its authorized shares. 

European stocks were moderately higher despite a report showing inflation in the 19 countries that use the euro currency rose by an annual rate of 7.5% in March, the fifth straight monthly record. Asian markets were mixed.

Also Read | Sri Lanka economic crisis: Hundreds stage protest outside President’s home, check details

Crude prices slipped modestly on Friday, with a barrel of US oil dipping 0.3% to $100. Brent crude, the international standard, fell 0.7% to $104.02 per barrel.